📋 Tender Overview
The signing ceremony of the Financing Agreement between the Republic of Croatia and the European Investment Bank (EIB) for the project "Revitalization of the Railway System of the Republic of Croatia" was held on Friday, February 2, 2024, at the premises of the Ministry of the Sea, Transport and Infrastructure in Zagreb.
In the presence of Deputy Prime Minister and Minister of the Sea, Transport and Infrastructure Oleg Butkovi?, the Contract was signed by Finance Minister Marko Primorac and EIB Vice-President Teresa Czerwi?ska. The contract will realise the first part of the 400m-euro loan, out of a total planned 900m-euro framework loan earmarked for projects aimed at improving railway infrastructure and passenger transport, which will renovate about 500km of local and regional lines and 30 stations and stops.
"The funds from this loan will enable us to further invest in railway infrastructure, for the purpose of reconstruction and construction of local and regional lines, i.e. parts of the network that we cannot finance with grants, since they are not located on European corridors," said Deputy Prime Minister and Minister Butkovi?, pointing out that investments in the railway system await us in the next ten years. "I call it a decade of investment in railways because Croatia could not simultaneously invest in all modes of transport. What we have left after the realization of large road projects, we have now decided to continue investments in railway infrastructure", said Butkovi? and added that, in addition to the reconstruction of railway infrastructure, part of the funds will be directed to the reconstruction of the fleet, which has already, thanks primarily to European funds, largely renewed and richer for 29 new trains that have been put into service in the last three years.
EIB Vice-President Czerwi?ska pointed out that today's signing of the contract marks an important milestone in the successful partnership with Croatia, since it is the largest contracted loan of the EIB since the beginning of its work in Croatia in 1977. "I am extremely pleased that we can help Croatia overcome the dual challenge of decarbonization and digitalization of the transport sector. Railways are one of the safest means of low-emission transport, and therefore we are proud to support Croatia in its ambitious plan to develop a modern railway system for the benefit of its citizens, businesses and the environment and in line with the EU's common objectives to ensure a greener and safer future," said the EIB Vice-President.
"The financing agreement represents significant support that the European Investment Bank will provide as part of the implementation of the Project 'Revitalization of the Railway System of the Republic of Croatia' and also forms part of the financial structure of the entire project, whose value is currently estimated at 2.6 billion euros," said Minister Primorac, adding that other sources of financing include EU funds and, in part, own resources. "These figures indicate our government's strong commitment to investments in railway infrastructure and the transport system, as well as the EIB's readiness to co-finance EU projects," the Finance Minister stressed, stressing that this financing agreement confirms the continued successful cooperation with the EIB.
EIB appropriations ensure favourabilitybut long-term funding, which, together with EU grants, will encourage sustainable transport and the transition from road to rail, which will significantly improve passenger safety while reducing traffic congestion, air pollution and greenhouse gas emissions. EIB funds will be used for the reconstruction, modernization, expansion and improvement of Croatian railway infrastructure and fleet, and in accordance with the agreement HŽ Infrastruktura will implement projects of reconstruction and modernization of the railway network, while HŽ Putni?ki prijevoz will implement projects for the procurement of new railway vehicles.
Ivan Krši?, President of the Management Board of HŽ Infrastruktura, said that they have been withdrawing large funds from EU funds for a long time and that projects worth about 1.5 billion euros are currently underway. He further stressed that this loan will renew 500 kilometers of railwaylines partly towards Slavonia, Podravina, around Zadar, Knin and Karlovac, and that about 30 stations such as those in Pula, Buzet, Vodnjan, Sesvete, Virovitica, Pleternica, etc. Will be renewed. trains on renewed sections will go at designed speeds, up to 120 kilometers per hour.
Željko Uki?, President of the Management Board of HŽ Putni?ki prijevoz, said on this occasion that the procurement of new trains is going as part of the project and that HŽ Putni?ki prijevoz provides funds for the procurement of 14 new trains, of which six will be for remote traffic, for connecting Zagreb and Split, while eight trains will be on alternative drives - battery and electrobattery trains.
